Microsoft Corp (MSFT)

No longer a growth stock. Fair Value 25

Microsoft hasn't made a decent operating system since Windows XP in 2001. That was eight years ago.

The coming months will show that Windows 7 is not a good replacement for Vista. People want a safer OS without requiring 2GB of memory to run it. They will bounce back next year most likely and windows 8 will be more similar to windows XP.

The question is will corporations who systems are dependant on XP and older versions of IE each spend millions in the next year to switch to 7. This is an issue for major corporations who are still using programs such as IE6 because of compatibility issues with newer versions of microsoft products and their own software applications. I can already tell you deploying a 7 customised clean image isnt as simple as XP. Will corporations be willing delagate resources to this new system in the next year ? Im saying no.

Microsoft will remain relevant until the OS morphs into a web based operating platform. As more information moves into the "cloud", Microsoft will begin to phase out of the picture. I don't see them keeping up with Google in the coming years.

new products are not significant to up income

Too big, can't fix a problelm unless they use East Indians who don't speak English. Hard to work with.

Lacking in leadership

Recent T-Mobile/Danger debacle will result in horrible PR, significant damaged lawsuit from TMobile, and industry suspicion of their Azure Services cloud computing initiative. MSFT is a giant of a company and their mobile operation is only one (small) business element, but I feel the recent events are symbolic of a greater failure of vision.

the good ship msft has sailed. it will weather the storms, but will never acheive the same levels of growth that it once did.

they reached the roof

Check the "Microsoft's Windows 7 Launch Party" video on YouTube. It's over. These guys know they must stay in the consumer space and grow there to continue to grow their business. And... drumroll... it isn't working out so well. Prediction: Windows 7 will be a lackluster event, and the Windows Mobile platform will not be resurrected from the grave.

Stammer on all you want about corporate business and how much of the revs and earnings are derived from that space. The reality is this- no one likes to use SQL Server and it is a joke for enterprise apps. Although they will get an upgrade cycle out of Windows 7- like the ascendance of the laptop, in 5-7 years everyone will be working on tablet/reader devices- and Windows has no game in that space.

strong price pressure from netbooks affecting the price mix of premium Windows version versus the bare bone essentials. Plus price pressure from office.org and web based apps for the office franchise. Both franchises account for more than 60% of company revenues and are the most profitable ones. Good Executive exodus continues.

Losing momentum: too many companies now know the enemy.

Windows 7 is good but not enough to help. Too many issues snowballing out of control. The popularity of netbooks yields lower margins for MS is one thing. Plus some netbooks will have other OSes loaded on as well. Retail stores selling Microsoft products is a terrible idea, maybe the worst ever from this company.

I predict the recession will last another year or two and bloated software giants like this one will be punished.

Always playing catch-up. They never develop anything new, just copy what is out there.

Ballmer does not understand technology or marketing. Can anyone say "Zune"?

Apple tablet, Google Android, iPhone, Google Chrome, MacOS X ... just some of the ways people will use computers without the painful Microsoft experience in coming years.

word.